Its rise is rapid inflation and in Britain, where in May it jumped to 9.1% reaching the highest levels here and 40 years!
Consumer prices rose 0.7% month-on-month in May, slightly above expectations of a 0.6% rise, but much less than the 2.5% monthly rise in April, which may be a good omen for in the coming months and leave “promises” to reduce inflation.
As for May, however, the biggest burden on inflation from the highly “stingy” prices in electricity, gas and fuel.
Bank of England: Raises interest rates by 25 basis points
A few days ago, the Bank of England (BoE) raised interest rates by 25 basis points to 0.75%, bringing official borrowing costs back to pre-pandemic levels.
It is the first time the BoE has raised interest rates in three consecutive sessions since the summer of 1997 as inflation climbed to 8% and other rate hikes are “likely” to follow. BoE officials voted to raise interest rates to 0.75%, with 8 votes in favor and 1 against.
The 9-member monetary policy committee of the Central Bank decided that the growing inflationary pressure required a tougher policy despite the negative effects on the economy from the war in Ukraine